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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: RIK who wrote (8021)	3/4/2001 11:45:36 PM
From: Richard Saunders	Read Replies (6) \| Respond to of 24899

RIK/Fix - Magin MGY. What figure do you think FST Forest or others will be willing to pay? Interesting stunt at the end of last year -- 2.5mil flow-thru shares issued at $4 and closed Dec.28 & then just over 60 days later the co. seems to be saying "we're for sale & we've got a data room if you're interested"....... I'm not sure of tax pool situation however I think it's somewhere in the $100mil - $125mil range. Not sure of total breakdowns of type of pools however with current industry cashflows and profits someone will be interested. Net debt appears to be around $60mil., maybe a bit more. Production at year end was not too far under 8,000 boepd at 10:1 with weighting about 70%+ oil & NGL. Copton property, operated by Forest Oil FST-nyse, is recently online and should increase. One estimate I saw recently was looking for MGY to average about 9,500 boepd (10:1) in 2001 with main growth being gas at Copton. IF one were to assume acquisitions of reserves somewhere around $12 per proven for 10:1 gas BOE and around $7 - $9 per proven for oil BOE there would seem to be some upside still left in the close price of $4.11 On a per flowing basis it appears recent transactions have been going for somewhere around $40,000+ per flowing boepd for gas and mid-to-upper $20,000 per flowing for oil. Trusts are paying premiums. MGY land position of 362,132 net undeveloped acres, property and equipment assets on the balance sheet for just over $289mil. Some gas hedges....... 6.2mmcf/d at $3.16/mcf until Oct.31, 2003 and 6.1mmcf/d at $2.90/mcf until Oct.31,2002. 2000 boepd oil until sept2001 at $3545cdn. and 1200 boepd oil jan2002 to Dec.2002 at $30.01cdn. Appears to be 33,876,000 shares o/s with 36,798,000 fully diluted. I haven't looked at historical trades but back in mid-Jan. there was a decent volume spike one day at between $3.00 and $3.15 It would be "interesting" to know the story with that day's trading............ Griffith's is doing the advising too for the MGY "shareholder maximization" process and I see they picked up a 39,800 share chunk in the last 45 minutes of trading on Friday at $4.15 Always "interesting" to see some of the blocks change hands near the time of news-worthy announcements -- definitely not mom-n-pop playing with the greenline account......... Interesting days ahead.